Genting Malaysia says full extent of Covid-19 impact remains uncertain

KUALA LUMPUR (Sept 23): Genting Malaysia Bhd said the full extent of the Covid-19 pandemic's impact on the group’s global hotel and casino operations remains uncertain at this juncture.

In its latest corporate presentation in September 2020, Genting Malaysia said it will focus on business efficiency to align its cost structure with the new operating environment.

"A recalibrated operating structure enables group to capitalise on the eventual recovery of the leisure and hospitality sector," said Genting Malaysia, the operating units of which include Resorts World Genting (RWG) in Malaysia besides Resorts World Birmingham in the UK.

In the US, Genting Malaysia runs Resorts World Casino New York City (RWNYC) and Resorts World Catskills (RW Catskills). In The Bahamas, Genting Malaysia operates Resorts World Bimini (RW Bimini).

On its local operations, Genting Malaysia said RWG will leverage domestic demand to drive visitations and revenue.

Genting Malaysia said RWG will also actively manage its cost base.

"Our focus remains on the completion of Genting SkyWorlds, which is targeted to open in mid-2021," Genting Malaysia said.

On its UK and Egypt operations, Genting Malaysia said the majority of the group’s land-based gaming operations had recommenced since Aug 15.

Genting Malaysia said its UK and Egypt operations are undertaking "active management of the cost structure to align with the new operating environment".

Commenting on the group's operations in the US and Bahamas, Genting Malaysia said the focus is on ramping up business volumes at RWNYC and RW Catskills.

Genting Malaysia said RWNYC and RW Catskills resumed operations on Sept 9 to positive reception.

"Gaming facilities are open to all visitors, while four F&B (food and beverage) outlets at RW Catskills have resumed operations," Genting Malaysia said.

Genting Malaysia said the group is also undertaking phased reopening of hotel rooms at RW Catskills.

Genting Malaysia said RW Bimini had suspended operations since July 25 amid renewed concerns surrounding Covid-19.

"The group’s (Genting Malaysia) earnings were significantly impacted by temporary closures of its US and Bahamas operations throughout 2Q20 (the second quarter of 2020)," Genting Malaysia said.

At Bursa Malaysia's 12.30pm break today, Genting Malaysia's share price settled three sen or 1.4% lower at RM2.12, which valued the company at RM12.04 billion.

The stock saw 8.72 million shares traded.

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